It's Vietnam Vs. India in Manufacturing
According to the International Monetary Fund (IMF), Vietnam's gross domestic product (GDP) is forecasted to reach about $469.7 billion by the end of 2024, ranking fifth in Southeast Asia. The growth of the country’s economy is largely driven by the growth of its manufacturing sector and foreign investments in the segment. It’s been only days since the Japanese trading company Mitsui & Co announced a definitive investment decision to proceed with the development of Vietnam's Block B gas field. The project represents a significant commitment by Mitsui, with an investment share of around $740 million, channeled through its subsidiary, Mitsui Oil Exploration (MOECO). This strategic move will help enhance energy security in the region, which, in turn, will help the manufacturing sector.
On the other hand, according to both local and regional media, Hana Micron, South Korea’s semiconductor giant, plans to invest $1 billion into chip production in Vietnam by 2025. The South Korean chip packaging and memory product manufacturer is moving equipment to its new second factory in Bac Giang Province, located in northern Vietnam. During the inauguration ceremony of the second factory, Hana Micron chairman Choi Chang Ho revealed that the group plans to raise its investment to over $1 billion by 2025.
However, Vietnam’s dreams of manifesting manufacturing prowess will not be easy as India offers tough competition, especially in the semiconductor industry. As the competition flares, we think it is the right time to shed light on the leaders driving this competition.